Published in The Financial Express on Sunday, 9 March 2014.
Road, sea link with Myanmar can ‘help reduce trade gap
Talha Bin Habib
Connectivity with Myanmar by sea and road could help the country lessen its trade gap, stakeholders said.
The important economic dimension of the two countries is to develop connectivity that will help the two nations reach their annual trade target. Except air connectivity, there are no road and sea links between the two countries.
Historically there were road and sea links between Bangladesh and Myanmar, but that remained suspended for decades. Early establishment of road and sea links between the two countries has become imperative, they said.
Bangladesh and Myanmar during their 7th Joint Trade Commission (JTC) meeting on January 14 and 15 last in Nay Pyi Taw have set a target to increase annual bilateral trade to US$ 500 million, five times higher than the present figure.
Currently, annual trade turnover between the two countries is around US $100 million. The balance of trade is in favour of Myanmar.
There is no road link between Bangladesh and Myanmar although there are two transit points along the border. Bangladesh proposed Myanmar to build 25 kilometre (km) road (2 km in Bangladesh and 23 km in Myanmar) by its own cost.
Bangladeshi entrepreneurs are interested to invest in Myanmar, particularly in agro-processing industries. If there is rod link then it will facilitate the local entrepreneurs to visit Myanmar. Myanmar is both geopolitically and economically a strategic partner of Bangladesh. There are vast scopes for cooperation in developing energy and natural resources potential for the benefit of both the countries.
Executive Director of the Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman said connectivity with Myanmar is important for increasing bilateral trade.
“Transport (road and shipping) connectivity is very important for enhancing trade between the two neighbours,” he said.
He emphasised on Asian Highway, BCIM (Bangladesh, China, India and Myanmar) Economic Corridor that would help increase bilateral and regional trade. It also could help reduce trade gap with Myanmar.
“Connectivity is important for the development of trade between Bangladesh and Myanmar,” said Md Sabur Khan, former president of Dhaka Chamber of Commerce and Industry (DCCI).
“Road connectivity and coastal shipping are important for increasing trade with Myanmar. It will also help both the countries to achieve their annual trade target,” Commerce Secretary Mahbub Ahmed told the FE.
Air connectivity has been re-established recently. Biman Bangladesh Airlines has resumed flights last year from Dhaka to Yangon twice a week, after a gap of over seven years. But the Myanmar Airways International (MAI) is yet to resume its operation of one flight a week between Yangon and Dhaka via Chittagong.